Farber & Partners Inc. has made its first report to the court in the Contac Services Inc. (CSI), Onewurld Supply Chain Solutions Inc. and Mywurld Solutions Inc. receivership in which it seeks approval of a proposed marketing and sales process in respect to the assets of CSI, Onewurld and Mywurld as well as an order “substantively consolidating the estates of the debtors.”
The receiver, appointed on Dec. 2, 2014, indicates in its report that Norrep Credit Opportunitites Fund, LP is currently owed $32.5 million, including accrued interest and charges and Contac has $25.5 million in unsecured creditor claims as well.
As a result, the receiver states in its report that “it believes the sales process should attract a going concern buyer which will be likely to generate a better recovery for the stakeholders than a liquidation of the assets.”
Farber also notes in its report that if approved by the court, there would be a 5 week sales period with bidding closing at 4 pm on Jan. 15, 2014, with the “anticipated closing of the transaction” occurring no later than Jan. 31, 2015.
The receiver also indicates that there is an urgency to the sales process, commenting: “Mywurld is incurring significant losses that are eroding the debtors’ financial position to the detriment of all of the debtors’ stakeholders. It is, therefore, in the interest of all parties that a prolonged sales process be avoided and that a sales process be approved and commenced immediately.”